can credit card collection agency garnish my bank acct

Submitted by disabled veteran on Thu, 03/12/2009 - 22:38
Forums

Can someone tell me if a credit card collection agency can freeze my checking/banking account for debt that I owe on my credit cards? (2) Can they take me to court and sue me? (3) I have only my disabilty(80%) and my retirement from the military, can they take my only two sources of income? I currently live in Texas.

Yes, the credit can company can sue you to the court to recover the debt. They can garnish your bank account only if they bring judgment against you to do so. Social security benefits such as disability and retirement benefit can never be garnished for repaying back credit card debts. They can only be garnished if you have an outstanding Federal Tax debt or alimony and child support obligation.

Fri, 03/13/2009 - 06:03 Permalink

Disabled, You must make sure any creditor knows that this is what the money in your bank account if from. If they go to court and a judgement is issued you need to let the judge know that this is your only income. You may also want to inform the bank if a judgement is issued so they know not to use that money towards the judgement.
I am wondering if it is even still conisdered SS and retirement once it is deposited..Anyone know?

Fri, 03/13/2009 - 16:08 Permalink
michicanna (not verified)

When you are a veteran, and recieve payments through retirement or diability, there are exclusions to the rules that you would have to be garnished. Or that any collectors can come after your income. My father-in-law, who owed a lt of money, was never garnished. Through the court systems, his money could never be touched, because that was a single source of income+something about his age+ something having to do with being a worker for the government. Anywhom, all these things add up and in many cases a vetern, can not be touched. Unless they pick up other means of income. . . sweet benefit if you ask me.

Mon, 04/20/2009 - 04:09 Permalink

Hi chi chi,

Social Security and retirement disability are not garnishable. Thus, you need to declare that all your money comes from Social Security and retirement.

Thanks,

Aaron

Mon, 05/17/2010 - 11:39 Permalink